Governor Kaine Signs Back-To-School Tax Relief
– New law provides “sales tax holiday” on school-related items in August –

RICHMOND – Governor Timothy M. Kaine today ceremonially signed legislation adopted by the 2006 General Assembly creating an annual three-day “sales tax holiday” on the purchase of certain back-to-school related items. The sales tax holiday will occur Friday, August 4th, 2006, and expire at midnight on Sunday, August 6th, 2006.  This tax relief will save Virginia parents an estimated $3.6 million this year.

House Bill 532, sponsored by the late Delegate Harry Parrish, consolidated eight different House proposals that included some version of a back-to-school tax holiday. Senate Bill 571, which was identical to HB 532, was sponsored by Senator Ryan McDougle. Both measures passed with overwhelming bipartisan support.

“Every parent knows that getting ready for a new school year can be an expensive proposition. The legislation I am signing into law today is an effort to make that process a little easier and a little more affordable for Virginia families,” Governor Kaine said.

The exemption will occur on an annual basis for a three-day period starting the first Friday in August, and ending at midnight on the first Sunday in August. The exemption applies to school supplies with a selling price of $20 or less, and clothing or footwear with a selling price of $100 or less. In addition to an exemption for school related supplies, this bill allows a dealer to absorb the sales tax on the sale of any itemduring the exemption period.

The Virginia Tax Department will post detailed information about the specific items that are eligible for the exemption on their website, www.tax.virginia.gov, by mid-July.

Virginia is at least the 15th state to enact this type of tax relief. The others are Connecticut, Florida, Georgia, Iowa, Louisiana, Maryland, Massachusetts, Missouri, New Mexico, New York, North Carolina, South Carolina, Tennessee, and Texas, as well as the District of Columbia.

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